An insurance company had been deducting the premium from the GIRO account belonging to another policyholder. The company discovered the mistake after 8 years and informed the account owner.
The account owner asked for compensation for the wrongful deduction. After a delay, the insurance company calculated the interest based on the average fixed deposit rate of 1.2% p.a.
The account owner had been paying interest at 5.5% on a loan taken from his own policy. He asked for the interest to be computed at 5.5%.
a) The request for the interest to be computed at 5.5% is fair.
b) It is important for the account holder to check the GIRO deduction regularly to spot this kind of mistake.